You didn't factor in the number of targeted audience.
Say for example Star Wars. The production cost plus the staff salaries is
enough to bribe a presidential election in my country. But their projected box
office earnings is more than double that because it caters for all viewing
audience. And there's the earnings in merchandising, licensing and video
While a world table tennis championship coverage, with a budget of say 50,000
US dollars, has a very small market. Because of a small projected earnings,
the producers needs to up the price to make up for the project small volume of
Sorry for the poor grammar. English is not my native language.